While a Texas federal district court’s preliminary injunction puts this requirement on hold, many experts expect that to be overturned. In that event, failure to file could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties. Read more for details on how this may impact your business in the future. 1. Determine if Your Business Must File. A “reporting company” is any small business, corporation, or LLC that is registered with the state, unless exempt. Exemptions apply to publicly traded companies, banks, and charities. For example, a local bakery in Visalia, CA would likely need to file a BOI report. 2. Identify Your Beneficial Owners. A “beneficial owner” is someone who either has substantial control over a company or owns at least 25% of it. For example, in the context of a small nutrition consulting business in Visalia, the lead nutritionist who owns 40% of the company and makes strategic decisions about client services and business operations qualifies as a beneficial owner. 3. Gather the Required Information. Prepare: Business name, address, and EIN. Beneficial owners’ names, addresses, DOBs, and ID details. 4. File Your BOI Report. Deadlines: Existing businesses: File by 01/01/2025. New companies (2024): File within 90 days of formation. New companies (2025+): File within 30 days of formation. ZenBusiness offers guidance and tools for business owners in California when BOI reporting, simplifying the process to help businesses comply with FinCEN requirements. Penalties for Non-Compliance: While a Texas federal district court’s preliminary injunction puts this requirement on hold, many experts expect that to be overturned. In that event, failure to file could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties. FinCEN provides a 90-day safe harbor period for corrections without penalties. No action is needed immediately, but if you decide to move forward and file, you can avoid hassles by filing with the quick and accurate assistance of ZenBusiness. Additional Resources: Learn the State Requirements for Beneficial Ownership Reporting Completing the Beneficial Ownership Information Form with Ease We want to hear from you! Your feedback matters! Please complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey here! Thank you for your support! As of December 3, 2024, a Texas federal district court has issued a preliminary injunction for all states to block the CTA and its relevant regulations. However, filing your BOI will help you avoid fines if this injunction is overruled.The CTA, BOI and FinCEN: What Does this Mean for Visalia, CA Businesses?
The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.
